It is difficult to start a business, as well as applying for a merchant account. The merchant accounts get approval or disapprove from the risk departments. While considering the business to be high-risk business or Low-risk. There are few reasons why any business can be in high-risk business.
Risk factors that make a business HIGH RISK
You have lost your previous merchant account due to high chargeback ratio.
Questionable sales and marketing tactics.
Potential legal and financial liability.
Your credit is really bad.
Industries with excessive chargebacks or fraud incidents.
Trial continuity business.
Previous credit card processing is not good enough.
You’ve been branded as a terminated merchant (TMF).
The high-risk merchant account categorization depends on your business’ industry. Regardless of your individual businesses’ track record. In addition, the high-risk category includes businesses that are declined by a previous credit card processors. And, businesses that are on the MATCH or TMF list. Also. the companies whose owners have bad personal credit or low credit scores or businesses outside the US.
Common High-Risk Industries
Any business with bad personal or business credit scores, a high chargeback history, a startup, or high frequency or high average tickets can be at high risk. On an individual basis, the majority of high-risk businesses are among such by the industry they operate in.
Some examples of high-risk industries include
Document Preparation
Downloadable Software
Educational Software
Electronics Business
Extended Warranties
Financial Aid Consulting
Financial Services
Fine & Cosmetic Jewelry
Insurance Providers
Magazine Subscriptions
Air & Water Filtration
Antiques & Collectables
Apparel Sales
Auto Parts & Accessories
Auto Transport
Businesses with Bad Credit
Beer, Wine & Liquor Sales
Computer Hardware
Debt Consolidation
Discount Buying Service
Get more information for you can contact us @ +1 (888) 622-6875.
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